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Nadler Seeks to Help Large Families Make Ends Meet

Will introduce the Tax Fairness for All Families Act of 2013 to provide an increasingly larger Earned Income Tax Credit to assist families with more than three children

Jun 9, 2013Issues: Education and Children

NEW YORK, NY – Today, Congressman Jerrold Nadler (D-NY) announced important new legislation designed to assist large families struggling with the high costs of living. In direct response to the concerns of many of his constituents, Nadler will introduce the Tax Fairness for All Families Act of 2013 this week in order to ease some of the financial burdens that keep large families living in or near poverty. The bill would provide an increasingly larger Earned Income Tax Credit (EITC) for families with more than 3 children.

“My district has many large families, often living in or near poverty, and many need help with daily expenses so that they don’t slip through the cracks,” said Nadler. “The burden of balancing work, family and community life – especially in expensive areas like New York City – is very challenging. My bill responds directly to the needs and concerns of large families, and would help them pay for basic necessities, like food, rent, transportation, and other costs that families with more children incur.”

Here is how Nadler’s bill would work:

• The bill would provide an increasingly larger EITC for families with more than 3 children.
• The size of a family’s EITC depends on its earned income and number of children.
• Under current law, a family’s EITC maxes out at 45% of income for 3 or more children regardless of the number of children in the family.
• Nadler’s bill would expand the number of children for which a family can claim the EITC to 7 or more. Families with 4 children would receive a 50% credit; 5 children a 55% credit; 6 children a 60% credit; and, 7 or more children a 65% credit.
• For example:
• Under current law, a family with 7 children making $26,000 per year receives an EITC of $5,385.
• Under Nadler’s bill, that same family would receive $8,070 in their EITC.
• For each additional child, there is a 5 percentage point increase in the EITC, which results in a 10-11% larger credit for each child.
• The EITC phases out gradually as a family’s income increases, so that families are not all of sudden cut off from a benefit just because their income grows.
• EITC is distinct from the Child Tax Credit, which is not fully refundable.
• EITC was especially designed for low-income families as a means of escaping poverty.